SHANGHAI, Sept 4 (Reuters) - Chinese e-commerce giant
Alibaba's ( BABA ) domestic platforms Taobao and Tmall will
begin accepting payments from Tencent's ( TCTZF ) WeChat pay, Alibaba ( BABA ) said
in a statement on Wednesday.
Alibaba ( BABA ) is affiliated with the Jack Ma-founded Ant Group's
Alipay, which is WeChat's main rival for online
payments in China.
Tencent ( TCTZF ) has also been a major investor in other
e-commerce platforms, including Alibaba ( BABA ) rivals JD.com ( JD )
and PDD Holdings' ( PDD ). Both JD.com ( JD ) and Pinduoduo already
offer WeChat Pay as an option.
According to Alibaba's ( BABA ) statement, Taobao and Tmall Group
(TTG) have informed merchants about the draft plan to add WeChat
Pay as a payment option.
It did not make clear how quickly the service was likely to
be completely rolled out to users and Alibaba ( BABA ) did not respond to
queries about the timing.
In quarterly earnings results released last month, Alibaba ( BABA )
said its domestic e-commerce market share had stabilised.
Revenue at the company's domestic e-commerce arm fell by 1%,
but the number of purchasers and their purchase frequency
increased order growth by double digits.
China's e-commerce landscape was originally set up so that
users could only use Tencent's ( TCTZF ) payment system on
Tencent ( TCTZF )-affiliated platforms and Alipay on Alibaba ( BABA )-affliated
ones, but the "walled garden" system has gradually broken down.
Since 2021, WeChat users have been able to share links to
products on Alibaba's ( BABA ) e-commerce platforms, but not complete
transactions with WeChat Pay.